AUD/USD bounces-off lows, back near 0.6900

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The AUD/USD pair trims losses and recovers to the 0.69 handle, having and accelerated to the downside on the back of falling commodities’ prices.

    AUD/USD loses nearly 80 pips so far

    Currently, the AUD/USD pair trades -0.21% lower at 0.6892, retreating from fresh session lows struck at 0.6876 last minutes. The resumption of the sell-off in oil, industrial metals and equities after the initial risk-on wave this Thursday, spooked investors once again. Hence the demand for higher-yielding assets took a hit amides full-fledged risk-off market profile.

    Moreover, the Aussie failed to take advantage from broad USD weakness, as markets remained unnerved in wake of the ongoing global market turmoil triggered by the recent oil rout. However, the bulls have found some support a positive start to the European markets, but it remains to be seen if the Aussie manages to hold up the recovery amid fragile sentiment.

    Markets now await the US weekly jobless claims and the Philly Fed manufacturing gauge for fresh incentives on the pair, while oil and stocks will continue to grab a lot of attention.

    AUD/USD Levels to watch

    The pair heads higher and finds the immediate resistance at 0.6937/42 (1h 200-SMA/ Jan 20 High) above which gains could be extended to the next hurdle located at 0.6979 (daily R1). On the flip side, the immediate support located at 0.6862 (Daily S1). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6824 (Jan 15 low).
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